Financial Daily from THE HINDU group of publications
Monday, Apr 10, 2006
Financial Daily from THE HINDU group of publications Monday, Apr 10, 2006 |
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Environment Agri-Biz & Commodities - Co-operatives Co-ops waking up to carbon trading opportunities Mamuni Das
Showing the way Proposal at `request for registration' stage at UN The project envisages generating 42,446 certified emission reductions a year Using bagasse to generate electricity, the project may have surplus power for supply to Maharashtra grid
New Delhi , April 9 Taking a cue from corporates, co-operative units have now started taking interest in carbon trading. The Shree Pandurang Sahakari Sakhar Karkhana (Shree Pandurang SSK) sugar unit in Maharashtra may emerge as the first co-operative sugar mill whose project would be registered at the UN as one that could trade carbon. The Maharashtra-based project, that would generate electricity by using bagasse, is likely to result in surplus power generation and thus be able to provide about 9 MW power to the Maharashtra grid. The project involves installation of a high-pressure boiler and condensing-cum-double extraction turbine generator.
Waiting for acceptance
Its proposal is now in the "request for registration stage" at the UN and if there are no requests for review, it should get registered by May 4. Registration by the UN panel would mean an acceptance of the project as a CDM activity. It is the prerequisite for the issuance of certified emission reductions (CERs) or carbon credits by the UN. The proposed CDM project will increase power generation at the plant, leading to exports of power to the grid. This will supplement current and planned electricity generation from traditional fossil fuel-based power plants. As the project will use bagasse for generation of electricity it will qualify as a renewable source of electricity. The project envisages generating 42,446 CERs a year.
Additional income source
It is the first co-operative sector project to be submitted for registration as a clean development mechanism (CDM) project, Agrinergy Director Mr Robert Taylor told Business Line. Agrinergy is the project consultant for Shree Pandurang SSK. CDM are those projects that can potentially generate carbon credits and trade them. According to Mr Taylor, "This demonstrates that CDM provides additional revenue streams that should permit other co-operatives to tap this source of funding to overcome the barriers to the uptake of bagasse cogeneration in the co-operative sector." Further, several sugar co-operatives can use CDM to partially fund setting up cogeneration plants. Agrinergy has also prepared a report for investment in a 12 MW grid-based bagasse cogeneration plant in another cooperative unit — Shree Chhatrapati Shahu SSK.
Identifying barriers
Agrinergy has conducted a study to identify barriers to the uptake of grid-based bagasse cogeneration in the co-operative sector, funded by the Global Opportunities Fund of the UK Foreign and Commonwealth Office. Through this, the firm identified use of build, own, operate, transfer (BOOT) models, and CDM to promote such projects. Shree Renuka Sugars has decided to install a 15 MW bagasse-cogen plant at Mohanrao Shinde SSK, a co-operative sugar factory it has taken on lease, it said. However, it also pointed out that the uptake of BOOT models has been slow.
More Stories on : Environment | Co-operatives | Sugar
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